Abstract

This negotiation introduces a situation full of opportunities for hard bargaining and out-of-the-box thinking about value-creating solutions. The American supplier, Reed Oilwell, views this business opportunity as a side door into the Petroecuador supplier network. The cross-cultural elements of the relationship are important, especially in the context of the various political aspects that shape the relationship between YPEC and its major customer, Petroecuador. The negotiation illustrates the potential for a cooperative approach, but also offers the opportunity for a competitive outcome. The parties are instructed to reach a deal that satisfies their short-term goals, but their decisions will impact their ability to establish a preferred supply position in the new oilfield operations.

Teaching
This case can be used in sales management or international sales course to prepare the students for an intricate negotiation with a major customer. It may also be used in a Negotiations course to illustrate the use of a variety of negotiation tactics. The Teaching Note contains additional confidential information for team preparation.
Case number:
A12-10-0010
Subject:
Marketing
Year:
Setting:
South America
Length:
3 pages
Source:
Library, general experience